Spotify Technology SA’s subscriptions surged 40% thanks to promotions during the most recent quarter, though the music-streaming company tempered the high end of its guidance for the year as it posted a wider loss.
The Wall Street Journal reports Spotify said it now has 83 million subscribers after adding a net 8 million of its most lucrative type of customer during the quarter. Including the many more customers of its free, ad-supported tier, the service altogether has 180 million monthly active users. Both results hit the top of the company’s guidance.
The company’s biannual discounted premium service campaign and extension of its Hulu bundle offering to premium subscribers—previously only offered to students—helped drive subscription growth in the quarter. The promotional activity also dragged average revenue per user down 12%.
In all for its second quarter reported as a public company, Spotify posted a loss of $461.5 million, wider than its $220.2 million loss in the same period a year ago.
The company, which has reported net losses every year since it launched in 2008, has said it is prioritizing growth over profit—a strategy executives believe will make the business more valuable long-term.
Revenue grew 26% to $1,487.7 billion, near the high end of the company’s guidance, and in line with street expectations.
For the current quarter ending in September, Spotify said it expects to hit 85 million to 88 million premium subscribers and 188 million to 193 million active users.
Spotify also issued guidance for the fourth quarter, forecasting its subscriber count to hit 93 million to 97 million and active users to reach 199 million to 207 million. That is just below the up to 96 million subscribers and 208 million active users the company had previously forecast.
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